CDB and DFC launch USD20 mn consolidated line of credit in Belize
On January 31, 2018, under the theme “Facilitating DFC’s Developmental Mandate,” the Caribbean Development Bank (CDB) and the Development Finance Corporation (DFC) launched CDB’s 8th Consolidated Line of Credit to the DFC.
This new BZD40 million (USD20 mn) credit line, guaranteed by the Government of Belize, enables the DFC to continue financing, on affordable terms, market segments that are not readily catered for by the commercial banks and other financial institutions. These include priority sectors such as small and medium size enterprises, student loans, low income housing and energy efficiency / renewable energy projects.
The Credit Line is complimented by a technical grant of BZD370,000 for institutional strengthening and capacity building, as well as supporting due diligence for climate risk assessment of sub projects.
Between 2009 and 2016 CDB made BZD80 mn available to DFC in long term financing, half of which was approved in 2016.
Peter Blackman, Portfolio Manager, Private Sector Development Unit, CDB stated, “Given the higher incidence of poverty in rural Belize, providing funds to DFC for support to agriculture is a strategic investment in the country’s development and especially in providing opportunities for rural households to earn income.”
Blackman indicated that housing was the most conspicuous aspect of social provision and highlighted some of the additional benefits to be derived from home ownership, including access to finance, particularly for education.
The credit line also includes an allocation for tertiary level education geared at developing Belize’s human capital and facilitating participation in the local and regional labour markets through increased certification.
Franklyn Magloire, Assistant General Manager, Lending Operations, DFC, highlighted some of the new initiatives the DFC is now undertaking including climate resiliency, energy conservation and gender mainstreaming initiatives.
Through this new Program, the CDB and DFC continue to support the national development priorities of the Government and People of Belize.